Deutsche Telekom has priced €650m (US$852.8m) in 12-year bonds.
Issued by wholly-owned subsidiary Deutsche Telekom International Finance, the notes carry a coupon of 2.75% and mature on 24 October 2024. They priced at 98.538, equal to a spread of 82…
Deutsche Telekom has priced €650m (US$852.8m) in 12-year bonds.
Issued by wholly-owned subsidiary Deutsche Telekom International Finance, the notes carry a coupon of 2.75% and mature on 24 October 2024. They priced at 98.538, equal to a spread of 82 basis points over mid-swaps.
The proceeds will be used for general corporate financing and are not connected to a specific project, a company spokesperson said, adding that the company is “very pleased with the transaction”.
The lead managers for the issue, launched under the telco’s DIP programme and guaranteed by Deutsche Telekom, are Deutsche Bank, DZ Bank and RBS.
Moody’s has rated the bond ‘Baa1’.
The transaction marks the company’s first sale of benchmark bonds in euros since July 2010.
